When the maximizing actions of two economic agents are not aligned, these agents face a(n):
A) coordination problem.
B) incentive problem.
C) correspondence problem.
D) objective problem.
Question 2
Demand curves for the services of productive resources
A) have no meaning, because people must have income in order to live.
B) obey the law of demand.
C) tend to be perfectly elastic in the long run because any resource can ultimately function as a substitute for any other.
D) tend to be perfectly inelastic in the short run as long as production processes are determined by technology.
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